How To Make Passive Income From Digital Products

AFFILIATE DISCLAIMER: I may earn a small amount of money from some of the products that I have mentioned in this post at no extra cost to you. Please find the full affiliate disclosure here.

In this article, I will be telling you how you can make passive income from digital products. If you are new to the topic or you haven’t heard of digital products, I highly recommend that you read my article that explains what Digital Products are, the different types of digital products, and their advantages.

There are a few steps that you need to follow if you are just getting started on creating digital products. I will explain step-by-step, exactly what you need to do if you want to start your own digital product business. Bear in mind, a few months ago, I was just as new to this as you probably are right now. So everything I mention here is exactly what you need to know to get started – and I’ve simplified everything for you as well. So, let’s get right to it!

Step 1: Find your passion

Before you get into anything, the most important step is to find out what your passion is. For some, it’s to sing. For some others, including me, it is designing. So the first step in this entire process is to find out where your passion lies so that you can create a digital product that matches it. The most important reason is that when you have a passion for something, the business naturally does a lot better.

If you have multiple interests and you don’t know how to decide on which product to create, I suggest that you focus on one first. This is because when you put your attention to one business, normally it does a lot better than if your attention was divided between two different businesses.


Step 2: Understand your market

This is the second most important step when it comes to earning passive income from digital products. Even though I call this the second most important, this step is just as important as the first step. You need to evaluate and carefully analyze the market that you’re trying to reach. This is also called Niching – you need to find your Niche.

Find out which audience you want to focus on. This step is beautifully explained by Sanuth in his article on how to select your target audience. Once you have selected the target audience that you want to reach, the next step is to find out what your target audience is interested in – or what is in demand. You can do this by doing market research. I have written an article on the steps you need to take to do good market research. You can refer to that article when doing this step.

Step 3: Match them!

Once you’ve found what you’re passionate about, and once you have found what your target audience is interested in, find a way to link them together. For example, if you like singing, and your target audience likes listening to country music, you can choose country song covers as your digital product. Another example is if you like designing, and your target audience loves digital templates, you can create beautiful templates that they would be interested in.

Also, make sure you ask your close friends what they think about your digital product idea. When you match your interest with the target audience’s interests, it will be much easier for you to convince them to buy your products. And if they are satisfied with what they buy, they will constantly check up on your store to see if there’s anything else that they might need.


Step 4: Create your product

This step is where you actually create your digital product. Like I mentioned earlier, there are many types of interests that you can have. Your audience might also be interested in a lot of things. So the product you create can vary and so, you’ll need to use different platforms to create different digital products.

If you’re making music, you can use music mixing software and if you’re good at making software, you can use a software designing program. As a designer, my personal favorite is Canva because it’s really easy to create gorgeous templates with. As of now, I’ve created over 6 digital products using Canva! So if you like designing as well, you should definitely check it out!

Step 5: List it on websites

After you’ve created the digital product, it’s time to list it. As a tip, I recommend that before you begin selling your products officially, give the product for free first. Allow people to download and experience your digital product for free and ask them for their feedback. Use the feedback that they give you to make changes or modifications to your product. Then, proceed to officially list it.

You can either put it up on your own website, your local online marketplace or global platforms. (Etsy, Amazon, etc.) You can put it up on any website that is relevant to the product that you’re selling.

My personal favorite is Etsy. I started my online store roughly 1 – 2 months ago and it’s been a great experience. I still give my digital products for free on my website. Feedback from users is one of the most important factors when it comes to perfecting your digital product.


Step 6: Promote

This step is the final step. Once you’ve created and listed your digital product, you’ll need to promote it. Because if not, people will never even know you have a digital product or even a store! So make sure you do this step really well. You can promote your listing online either on Facebook, Reddit, Pinterest, or even on your own social media! You can also use online advertisements to spread the word.

The promotion platform you should be using mostly depends on the niche or target market that you’re aiming for. Facebook has users of all demographics. Therefore, it is definitely a great place to promote your listing. Pinterest on the other hand is slightly different. Females make up a large portion of the Pinterest user base. Therefore, if you’re trying to sell ‘templates for men’, it most probably won’t get the attention that it should be getting. So finding the perfect platform to promote your listing is also one of the most crucial steps.

Step 7: Keep promoting

And that’s it! The only step you will need to do consistently is to promote your listing. Once you’ve created a good amount of digital products to maintain a store, you will never need to go back and check on it again. (unless you want to make any changes to it), and that’s the beauty of digital products. They’re infinite. If you’ve forgotten the advantages of digital products, check out my digital products article.

Bear in mind, just because I said “pick one interest” at the beginning, it doesn’t mean that you have to keep creating the exact same type of product. Once you start getting momentum on your promoting and getting sales, you can slowly expand your digital products line to other products that you’re interested in creating.

Like I mentioned earlier, I didn’t know any of these things a while back. So if you ever get stuck in the process, please don’t hesitate to reach out to me. I will definitely help you out with this. If you have any comments or questions, you can contact me personally via


1 thought on “How To Make Passive Income From Digital Products”

  1. Hey Ovini ! Thankyou for sharing this article with us. Its very helpful and insightful.. I can’t wait to create my own digital product ♥️♥️

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